Will new loan limits lower the cost of grad school?

What It Covers

The One Big Beautiful Bill Act eliminates Grad PLUS loans and caps graduate borrowing at $100,000-$200,000, potentially reducing tuition prices but limiting access to healthcare professions.

Key Questions Answered

• •Tuition inflation data: Research from University of Chicago shows every dollar increase in federal Grad PLUS borrowing led to dollar-for-dollar sticker price increases and 60-65 cent net price increases at graduate programs.
• •Borrowing caps by field: New lifetime limits dropped from $139,000 to $100,000 for most graduate students, while eleven professional programs including medicine, dentistry, pharmacy and law can access $200,000 limits instead.
• •Private loan disadvantages: Students shifting from federal to private lenders lose income-based repayment plans, public service debt forgiveness, and family-size adjustments that federal programs provide, disproportionately affecting lower-income and minority borrowers.